Hanesbrands Earnings Preview

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After beating estimates last quarter by $0.09, Hanesbrands (NYS: HBI) has set the standard for itself. The company will unveil its latest earnings today. Hanesbrands is a consumer goods company with a portfolio of apparel brands. It designs, manufactures, sources and sells a range of apparel essentials such as T-shirts, innerwear, casualwear, activewear, socks, and hosiery.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Hanesbrands, with six of nine rating it a buy and the remainder rating it a hold. Analysts like Hanesbrands better than competitor Warnaco Group overall. While analysts still rate the stock a Moderate buy, they are a little more optimistic about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $1.24 billion in revenue this quarter. That would represent a rise of 7.8% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.52 per share. Estimates range from $0.48 to $0.57.

What our community says:
CAPS All-Stars are solidly backing the stock with 84.1% assigning it an outperform rating. The community at large agrees with the All-Stars with 82.4% giving it a rating of outperform. Fools are bullish on Hanesbrands and haven't been shy with their opinions lately, logging 102 posts in the past 30 days. Hanesbrands' bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q3

Q2

Q1

Q4

Gross Margin

34.6%

34.9%

34.2%

30.3%

Operating Margin

12.4%

12.1%

9.8%

7.1%

Net Margin

7.4%

7.1%

4.6%

2.4%

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Earnings estimates provided by Zacks.

At the time this article was published

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